GREY:CHALF - Post by User
Post by
PortlandBlazeron Nov 06, 2021 7:15am
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Post# 34095320
Revenues Growing - an example
Revenues Growing - an exampleSome participants on this board ridicule Pro Forma analysis. Here's a hypothetical example:
Imagine a business with zero revenues, that buys an operating business on the last day of September. The 9/30 balance sheet will show the full costs of the acquisition, funded with debt and equity. The income statement will show zero revenues. Is the acquirer worthless, overleveraged and in trouble? It all depends on what they bought and how much they paid for it. The revenues and cash flows will show up on the Q4 statements.
CHAL is changing rapidly through organic growth and acquisitions. This year, they've bought Homegrown, Cannabliss and Fifth and Root. Some participants on this board, with their own agendas, would have you believe CHAL is worthless, overleveraged and in trouble. A simple analysis that looks at the balance sheet today and the run rate of revenues and cash flows today, will tell you a different story. That's a pro forma analysis.
Do your own diligence and your own pro forma analysis.
GLTA